Discussion:Autobody Shop is a cash method?
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Discussion Forum Index --> Basic Tax Questions --> Autobody Shop is a cash method?
Discussion Forum Index --> Tax Questions --> Autobody Shop is a cash method?
| 5 May 2008 | |
Hey Guys,
I have a client thats a Incorporated Auto Body Shop. I'm trying to figure out if they will qualify for the cash method? They have inventory (fluids, parts, etc) and there average gross income for the past 2 years is less than $5 million. PLEase help. Thanks! | |
| 5 May 2008 | |
| You'll get better response to your query if you'll complete your profile. Just click on your name in your post above. That will take you to your user page, where you can click on the "edit this page" tab and replace the boilerplate with your own information. Don't forget to save the page! | |
| 5 May 2008 | |
| $10MM is the threshhold for non-manufacturing businesses. You need to fill out Form 3115. There is as RevRul for this. In fact, there have been many iterations of the original. I don't know the number off-hand, but you need to file the form pursuant to that RevRul. Not a walk in the park the first time you do it, I think that someone smarter than me can do it in a lot less time than the 10 hours it took me.
First, why convert to cash? Is the A/R a lot higher than A/P? | |
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